Why is the Core Lithium share price powering up 7% today?

What's pushing Core Lithium shares upwards? Let's take a look.

| More on:
Man wearing green shirt and pink watch flexes his muscle. representing the strength in ASX shares at the moment

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Core Lithium shares race 6.91% higher to $1.47
  • Investors are confident the company will become an important player in Australia's critical minerals industry
  • Core Lithium's Finniss project is on track for first production towards Q4 2022

The Core Lithium Ltd (ASX: CXO) share price is again on the move today following strong interest in the company.

In the past month, the lithium producer's shares have risen by around 30%. In comparison, the All Ordinaries (ASX: XAO) is just 4% higher over the same time frame.

At the time of writing, Core Lithium shares are swapping hands at $1.47, up 6.91%.

Let's take a look at what's been powering the company's share price recently.

What's driving Core Lithium shares higher?

Investors have been snapping up the company's shares as it progresses its wholly owned Finniss Lithium Project in the Northern Territory.

Since the beginning of the year, the Core Lithium share price has ascended on the back of market confidence in lithium demand.

Popular belief is that Core Lithium will play a key role in meeting the future lithium supply gap. This is expected to grow rapidly as the demand for electric vehicles and renewable energy ramps up over the next decade.

Last month, the company advised that drilling works intersected high-grade spodumene mineralisation across multiple targets at the Finniss project. This led to the Core Lithium share price accelerating from $1.26 to as high as $1.63 in the following days.

The first production of lithium concentrate at Finniss is scheduled in Q4 2022. Once online, the Finniss Lithium Project will be the first Australian lithium-producing mine outside Western Australia.

The Australian Federal Government is focused on increasing the capabilities of onshore refinement of critical minerals.

Last year, Core Lithium's Finniss was awarded Major Project Status (MPS) by the Federal Government.

Achieving MPS underlines the importance of the strategic significance of this project to Australia. It provides extra support, including a single-entry point for regulatory approvals, project support and coordination with government authorities.

Share price snapshot

It has been a stellar year for Core Lithium shares, surging to a record high of $1.675 before taking a slight breather.

When looking at the past 12 months, its shares are up an outstanding 435%.

Based on today's price, Core Lithium has a market capitalisation of roughly $2.5 billion, with over 1.7 billion shares outstanding.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Energy Shares

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face over these rising Tassal share price
Energy Shares

Why is the Beach Energy share price racing higher on Thursday?

This energy producer delivered some big news this afternoon.

Read more »

A person is weighed down by a huge stack of coins, they have received a big dividend payout.
Energy Shares

Own Ampol shares? Get ready for your monster dividend payment

Ampol investors are about to enjoy their largest-ever dividend.

Read more »

A man sees some good news on his phone and gives a little cheer.
Energy Shares

Buy Woodside shares for a 20% gain and 4.5% dividend yield

Morgans thinks investors could get big returns from this energy giant.

Read more »

Woman holding $50 notes and smiling.
Dividend Investing

A 36% yield from this ASX dividend share? Here's how these forward-looking investors made it happen

Some savvy passive income investors are earning a 36% yield from this ASX dividend star.

Read more »

A Paladin Energy miner wearing a hard hat and protective gear stands in front of a large mining truck and smiles to the camera.
Energy Shares

Uranium is set to boom, and this is the 'premium' ASX stock to buy

Shaw and Partners' Jed Richards reckons these are the shares to buy for the nuclear energy theme.

Read more »

Happy coal miner.
Energy Shares

How these ASX 200 energy shares could unexpectedly burn brighter

ASX 200 energy shares are facing rising global demand for their products.

Read more »

Worker inspecting oil and gas pipeline.
Energy Shares

ASX energy shares losing charge amid fresh warnings of gas supply shortfalls

Many energy commodity prices fell overnight and this is hitting ASX energy shares today.

Read more »

A miner stands in front oh an excavator at a mine site
Energy Shares

'We have reached a bottom': 5 ASX uranium shares leaping higher this week

ASX uranium stocks have enjoyed explosive share price growth over the past year.

Read more »